FedEx (FDX) Stock Dips While Market Gains: Key Facts

Company Performance - FedEx's stock closed at $256.12, reflecting a -0.14% change from the previous day, underperforming the S&P 500's gain of 0.01% [1] - Over the past month, FedEx shares have decreased by 7.96%, which is worse than the Transportation sector's decline of 4.38% and the S&P 500's loss of 2.26% [1] Upcoming Earnings - FedEx is expected to release its earnings report on March 20, 2025, with analysts forecasting earnings of$ 4.59 per share, indicating a year-over-year growth of 18.91% [2] - The Zacks Consensus Estimate for revenue is projected at $21.89 billion, representing a 0.89% increase from the previous year [2] Full Year Estimates - For the full year, analysts anticipate earnings of$ 19.14 per share and revenue of $87.6 billion, reflecting changes of +7.53% and -0.06% respectively from the prior year [3] Analyst Estimates and Revisions - Recent changes to analyst estimates for FedEx are crucial as they often indicate short-term business trends, with positive revisions suggesting optimism about the company's profitability [4] - The Zacks Rank system, which incorporates estimate changes, has a history of outperforming the market, with 1 ranked stocks averaging a +25% annual gain since 1988 [5][6] Valuation Metrics - FedEx is currently trading at a Forward P/E ratio of 13.4, which is lower than the industry average of 15.72, suggesting a relative discount [7] - The company has a PEG ratio of 1.06, compared to the industry average PEG ratio of 1.38, indicating favorable growth prospects relative to its valuation [8] Industry Context - The Transportation - Air Freight and Cargo industry, which includes FedEx, has a Zacks Industry Rank of 223, placing it in the bottom 12% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape [9]